I

103D CONGRESS

2D SESSION H. R. 5229

To amend the Panama Canal Act of 1979 to reconstitute the Panama Canal

Commission as a United States Government corporation, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 6, 1994

Mr. TAUZIN (for himself and Mr. FIELDS of Texas) (both by request) introduced the following bill; which was referred to the Committee on Merchant Marine and Fisheries

A BILL

To amend the Panama Canal Act of 1979 to reconstitute

the Panama Canal Commission as a United States Government corporation, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. This Act may be cited as the ‘‘Panama

4 Canal Amendments Act of 1994’’.

5 SEC. 2. Section 1101 of the Panama Canal Act of

6 1979 (22 U.S.C. 3611) is amended to read as follows:
2

•HR 5229 IH

1 ‘‘ESTABLISHMENT, PURPOSES, OFFICES, AND RESIDENCE

2 OF THE COMMISSION

3 ‘‘SEC. 1101. (a) For the purposes of managing, oper4 ating, and maintaining the Panama Canal and its com5 plementary works, installations and equipment, and of

6 conducting operations incident thereto, in accordance with

7 the Panama Canal Treaty of 1977 and related agree8 ments, the Panama Canal Commission (hereinafter in this

9 Act referred to as the ‘‘Commission’’) is established as a

10 wholly owned government corporation (as that term is

11 used in chapter 91 of title 31, United States Code) within

12 the executive branch of the Government of the United

13 States. The authority of the President with respect to the

14 Commission shall be exercised through the Secretary of

15 Defense.

16 ‘‘(b) The principal office of the Commission shall be

17 located in the Republic of Panama in one of the areas

18 made available for use of the United States under the

19 Panama Canal Treaty of 1977 and related agreements,

20 but the Commission may establish branch offices in such

21 other places as it deems necessary or appropriate for the

22 conduct of its business. Within the meaning of the laws

23 of the United States relating to venue in civil actions, the

24 Commission is an inhabitant and resident of the District
3

•HR 5229 IH

1 of Columbia and the eastern judicial district of Louisi2 ana.’’.

3 SEC. 3. Section 1102 of the Panama Canal Act of

4 1979 (22 U.S.C. 3612) is amended by striking so much

5 as precedes subsection (b) and inserting the following:

6 ‘‘SUPERVISORY BOARD

7 ‘‘SEC. 1102 (a) The Commission shall be supervised

8 by a Board composed of nine members, one of whom shall

9 be the Secretary of Defense or an officer of the Depart10 ment of Defense designated by the Secretary. Not less

11 than five members of the Board shall be nationals of the

12 United States and the remaining members of the Board

13 shall be nationals of the Republic of Panama. Three mem14 bers of the Board who are nationals of the United States

15 shall hold no other office in or be employed by the Govern16 ment of the United States, and shall be chosen for the

17 independent perspective they can bring to the Commis18 sion’s affairs. Members of the Board who are the nationals

19 of the United States shall cast their votes as directed by

20 the Secretary of Defense or the designee of the Sec21 retary.’’.

22 SEC. 4. Section 1102 of the Panama Canal Act of

23 1979 (22 U.S.C. 3612) is amended by adding at the end

24 the following:

25 ‘‘(d)(1) In order to enhance the prestige of the Com26 mission in the world shipping community and allow for
4

•HR 5229 IH

1 the exchange of varied perspectives between the Board and

2 distinguished international guests in the important delib3 erations of the Commission, the United States and the Re4 public of Panama may each invite to attend meetings of

5 the Board, as a designated international advisor to the

6 Board, one individual chosen for the independent perspec7 tive that individual can bring to the Commission’s affairs,

8 and who—

9 ‘‘(A) is not a national of either the United

10 States or Panama;

11 ‘‘(B) does not represent any user or customer

12 of the Panama Canal, or any particular interest

13 group or nation; and

14 ‘‘(C) does not have any financial interest which

15 could constitute actual or apparent conflict with re16 gard to his relationship with the Board or the Com17 mission.

18 ‘‘(2) Such designated international advisors may be

19 compensated by the Commission in the same manner and

20 under the same circumstances as apply under subsection

21 (b) with regard to members of the Board. Designated

22 international advisors shall have no vote on matters pend23 ing before the Board.’’.
5

•HR 5229 IH

1 SEC. 5. The Panama Canal Act of 1979 (22 U.S.C.

2 3601 et seq.) is amended by adding after section 1102

3 the following:

4 ‘‘GENERAL POWERS OF THE COMMISSION

5 ‘‘SEC. 1102a. (a) The Commission—

6 ‘‘(1) may adopt, alter, and use a corporate seal,

7 which shall be judicially noticed;

8 ‘‘(2) may by action of the Board of Directors

9 adopt, amend, and repeal bylaws governing the con10 duct of its general business and the performance of

11 the powers and duties granted to or imposed upon

12 it by law;

13 ‘‘(3) may sue and be sued in its corporate

14 name, except that—

15 ‘‘(A) its amenability to suit is limited by

16 Article VIII of the Panama Canal Treaty of

17 1977, section 1401 of this Act, and otherwise

18 by law;

19 ‘‘(B) an attachment, garnishment, or simi20 lar process may not be issued against salaries

21 or other moneys owed by the Commission to its

22 employees except to the extent specifically au23 thorized by the laws of the United States; and

24 ‘‘(C) it is exempt from the payment of in25 terest on claims and judgments;
6

•HR 5229 IH

1 ‘‘(4) may enter into contracts, leases, agree2 ments, or other transactions;

3 ‘‘(5) may determine the character of, and neces4 sity for, its obligations and expenditures and the

5 manner in which they shall be incurred, allowed, and

6 paid, and incur, allow, and pay them, subject to per7 tinent provisions of law generally applicable to Gov8 ernment corporations; and

9 ‘‘(6) may purchase, lease, or otherwise acquire,

10 and hold, own, maintain, work, develop, and, subject

11 to section 1504, sell, lease, exchange, convey, mort12 gage, or otherwise dispose of, and deal in, lands,

13 leaseholds, and any interest, estate, or rights in real,

14 personal, or mixed property, and any franchises,

15 concessions, rights, licenses, or privileges necessary

16 or appropriate for any of the purposes expressed in

17 this Act.

18 ‘‘(b) The Commission shall have the priority of the

19 United States in the payment of debts out of bankrupt

20 estates.

21 ‘‘SPECIFIC POWERS OF COMMISSION

22 ‘‘SEC. 1102b. (a) Subject to the Panama Canal Trea23 ty of 1977 and related agreements, and to chapter 91 of

24 title 31, United States Code, popularly known as the Gov25 ernment Corporation Control Act, the Commission may—
7

•HR 5229 IH

1 ‘‘(1) manage, operate, and maintain the Pan2 ama Canal;

3 ‘‘(2) construct or acquire, establish, maintain,

4 and operate docks, wharves, piers, harbor terminal

5 facilities, shops, yards, marine railways, salvage and

6 towing facilities, fuel-handling facilities, motor-trans7 portation facilities, power systems, water systems, a

8 telephone system, construction facilities, living quar9 ters and other buildings, guest houses, warehouses,

10 storehouses, a printing plant, and manufacturing,

11 processing or service facilities in connection there12 with, recreational facilities, and other business ac13 tivities, facilities, and appurtenances necessary and

14 appropriate for the accomplishment of the purposes

15 of this Act;

16 ‘‘(3) makes sales, and furnish services, equip17 ment, supplies and materials, as contemplated by

18 this Act, to—

19 ‘‘(A) vessels;

20 ‘‘(B) agencies of the Government of the

21 United States;

22 ‘‘(C) employees of the Government of the

23 United States; and

24 ‘‘(D) any other governments, agencies, per25 sons, corporations, or associations eligible to
8

•HR 5229 IH

1 make such purchases, or receive such services,

2 equipment, supplies, or materials under the

3 laws prevailing at the time and the policies

4 heretofore or hereafter adopted consistently

5 with those laws;

6 ‘‘(4) use the United States mails in the same

7 manner and under the same conditions as the execu8 tive departments of the Federal Government; and

9 ‘‘(5) take such actions as are necessary or ap10 propriate to carry out the powers specifically con11 ferred upon it.’’.

12 SEC. 6. Section 1302 of the Panama Canal Act of

13 1979 (22 U.S.C. 3712) is amended—

14 (1) in subsection (c)(1) by striking ‘‘and subject

15 to paragraph (2)’’;

16 (2) by striking paragraph (2);

17 (3) by redesignating paragraph (3) as para18 graph (2); and

19 (4) by amending subsection (e) to read as fol20 lows:

21 ‘‘(e) In accordance with section 9104 of title 31,

22 United States Code, the Congress shall review the annual

23 budget of the Commission.’’.

24 SEC. 7. Section 1313 of the Panama Canal Act of

25 1979 (22 U.S.C. 3723) is amended—
9

•HR 5229 IH

1 (1) by striking the heading for the section and

2 inserting the following:

3 ‘‘AUDITS’’;

4 (2) in subsection (a) by striking ‘‘Financial

5 transactions’’ and inserting ‘‘Subject to subsection

6 (d), financial transactions’’; and

7 (3) in subsection (b) in the first sentence by

8 striking ‘‘The Comptroller General’’ and inserting

9 ‘‘Subject to subsection (d), the Comptroller Gen10 eral’’; and

11 (4) by adding at the end the following:

12 ‘‘(d) At the discretion of the Board provided for in

13 section 1102, the Commission may hire independent audi14 tors to perform, in lieu of the Comptroller General, the

15 audit and reporting functions prescribed in subsections (a)

16 and (b).

17 ‘‘(e) The audited financial statements of the Commis18 sion shall include assurances that the Commission will be

19 in a position to meet its financial liabilities on December

20 31, 1999.’’.

21 SEC. 8. Section 1601 of the Panama Canal Act of

22 1979 (22 U.S.C. 3791) is amended to read as follows:
10

•HR 5229 IH

1 ‘‘PRESCRIPTION OF MEASUREMENT RULES AND RATES OF

2 TOLLS

3 ‘‘SEC. 1601. The Commission may, subject to the

4 provisions of this Act, prescribe and from time to time

5 change—

6 ‘‘(1) the rules for the measurement of vessels

7 for the Panama Canal; and

8 ‘‘(2) the tolls that shall be levied for use of the

9 Panama Canal.’’.

10 SEC. 9. Section 1604 of the Panama Canal Act of

11 1979 (22 U.S.C. 3794) is amended—

12 (1) in subsection (a) in the first sentence by

13 striking ‘‘1601(a)’’ and inserting ‘‘1601’’;

14 (2) by amending subsection (c) to read as fol15 lows:

16 ‘‘(c) After the proceedings have been conducted pur17 suant to subsection (a) and (b) of this section, the Com18 mission may change the rules of measurement or rates of

19 tolls, as the case may be. The Commission shall, however,

20 publish notice of such change in the Federal Register not

21 less than 30 days before the effective date of the change.’’;

22 and

23 (3) by striking subsections (d) and (e) and re24 designating subsection (f) as subsection (d).
11

•HR 5229 IH

1 SEC. 10. The Panama Canal Act of 1979 is amend2 ed—

3 (1) in section 1205 (22 U.S.C. 3645) in the last

4 sentence by striking ‘‘appropriation’’ and inserting

5 ‘‘fund’’;

6 (2) in section 1303 (22 U.S.C. 3713) by strik7 ing ‘‘The authority of this section may not be used

8 for administrative expenses.’’;

9 (3) in section 1321(d) (22 U.S.C. 3721(d)) in

10 the second sentence by striking ‘‘appropriations or’’;

11 (4) in section 1401(c) (22 U.S.C. 3761(c)) by

12 striking ‘‘appropriated for or’’;

13 (5) in section 1415 (22 U.S.C. 3775) in the

14 second sentence by striking ‘‘appropriated or’’; and

15 (6) in section 1416 (22 U.S.C. 3776) in the

16 third sentence by striking ‘‘appropriated or’’.

17 SEC. 11. Section 9101(3) of title 31, United States

18 Code, is amended by adding at the end the following:

19 ‘‘(O) the Panama Canal Commission.’’.

Æ